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HiDesert

join:2008-08-17

2 edits
reply to myrv

Re: Competition is good

said by myrv :

Any time you combine two companies that overlap in the marketplace there will be a reduction in jobs, not an increase. To those who think otherwise, then we should just let Verizon, ATT, T-Mobile, and Sprint merge into one company as obviously that would create a HUGE surge in jobs! /sarcasm off

The fact of the matter is that towers are expensive and usually don't add new customers or reduce competition. However, buying a competitor does both. The less competition you have, the more you can charge for a product of increasingly inferior quality.

Even at a retail job loss will occur. Why would you need 2 stores that occupy the same geographical location? The solution would be to close the smaller of the two stores and possibly transfer a portion of the employees to the larger store.

True. If this deal goes through ATT will do just that. They will have sweeping cost cutting across the board with a task force of project managers looking for each and everything they can to cut corners, service and to fatten up the bottom line for the shareholders. The top execs will give themselves a fat bonus for their hard work. These days, companies don't like to compete the old fashion way. They want to secure markets by buying off politicians or have a legal department like Apple and sue everyone in sight for patent violations. Banks got congress to rubber stamp their bankruptcy bill, content holders bundle channels so individual channels don't have to compete based on viewership/quality for carriages etc.. Oligopolies and monopoles do not like traditional competition and for the most part, don't.

countscabula

join:2010-03-09

how many 1000's of jobs do you think at&t's previous mergers have cost? Who was in office then?